The Company previously classified its businesses into two reportable segments, the News Media Group and the About Group. However, following the announcement of the About Group sale in August 2012, the Company views its operations and manages its business as one reportable segment effective for the quarter ended September 23, 2012. The Company will continue to provide revenues for The New York Times Media Group and the New England Media Group.
This release includes non-GAAP financial measures, a discussion of management’s reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures.
There were no special items in the third quarter of 2012.
The third-quarter 2011 results included the following special items:
- A $65.3 million ($37.8 million after tax or $.24 per share) gain on the sale of 390 of the Company’s units in Fenway Sports Group.
- A $46.4 million ($27.5 million after tax or $.18 per share) charge in connection with the prepayment of the Company’s $250 million 14.053 percent notes.
In addition to these special items, the Company had $3.0 million ($1.7 million after tax or $.01 per share) in severance costs in the third quarter of 2012 and $2.9 million ($1.7 million after tax or $.01 per share) in the third quarter of 2011.
Third-Quarter Results from Continuing Operations
Total revenues decreased 0.6 percent to $449.0 million from $451.6 million. Advertising revenues decreased 8.9 percent, circulation revenues increased 7.4 percent and other revenues decreased 2.9 percent.
Print and digital advertising revenues decreased 10.9 percent and 2.2 percent, respectively, largely due to the challenging economic environment, ongoing secular trends and an increasingly complex and fragmented digital advertising marketplace. Circulation revenues rose mainly as growth in digital subscriptions and the increase in print circulation prices in the first half of 2012 at The New York Times and The Boston Globe offset a decline in print copies sold.